Gold prices fell significantly as investors positioned for a hawkish speech from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Concerns over persistent inflation, reinforced by recent PCE data, have increased expectations for further interest rate hikes, making non-yielding gold less attractive. A strengthening U.S. dollar also exerted downward pressure on the precious metal. The market is pricing in a higher probability of a rate hike by the end of the year, leading to profit-taking and caution among gold investors.